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Determine the effect on the consumption of cereal

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Reference no: EM131752406

The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In P+0.75In A-1.3M, where Q is the quantity of cereal,P is the price of cereal,A is the level of advertising, and M is income. Based on this information, determine the effect on the consumption of cereal of:

a: A 5 percent reduction in the price of cereal.

b: A 4 percent increase in income.

c: A 20 percent reduction in cereal advertising.

Reference no: EM131752406

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